In passing the natural gas act of 1938, congress acknowledged that interstate natural gas pipelines and other natural gas transmission. Under the federal power act, the parallel law on which much of the natural gas act was. Oil and natural gas returns are available in our transaction portal tap. The communications act fca of 1934, like part ii of the federal power act fpa of 1935 and the natural gas act nga of 1938, were all legislation of the same era and were all modeled on the 1887 interstate commerce act. In the years prior to the passage of the act, concern arose about the monopolistic tendencies of the transmission companies and the fact that they were charging higher. In the energy policy act of 2005 epact 2005, congress amended the nga to prohibit manipulation in natural gas markets by market participants. However, the law did not cover the regulation of interstate gas sales. In 1938, the federal government became involved directly in the regulation of interstate natural gas with the passage of the natural gas act nga. Nepa national environmental policy act of 1969, as amended nga the natural gas act of 1938, as amended. Oil and gas the hinshaw bill amendment to the natural. A key aspect is the setting of tariffs, or rates, that may be charged.
Amendment of regulations and approved forms under the natural gas act, to prescribe revised rules governing the form, composition, filing, and posting of rate schedules and tariffs for the transportation or sale of natural gas subject to the jurisdiction of the commission, order no. Provision of the information requested is mandatory, arid failure tb provide this. To carry out its delegated responsibility, fe requires individuals seeking to import or export natural gas to file an application providing basic information on. Under section 3 of the natural gas act of 1938, ferc is responsible for authorizing the siting and construction of onshore and nearshore lng import or export facilities. Natural gas act of 1938 nymex newyork mercantile exchange, inc. The commission has expedited the certification of natural gas. The nga declares that the business of transporting and selling natural gas for ultimate distribution to the public is affected with a public interest, and that federal regulation in matters relating to the transportation of natural gas and the sale thereof in. In 1938, the federal government became involved directly in the regulation of interstate natural gas with the passage of the natural gas act. Natural gas act of 1938 office of fossil energy department of.
Data are collected from annual, quarterly, and monthly surveys. It grants ferc the authority to regulate the interstate transport and sale of natural gas by, for example, setting pipeline rates and establishing the conditions for transportation facilities. Part i interpretation section 1 oil and natural gas act page cur8 rent to. Until 1977, section 3 of the natural gas act of 1938, pub. Processes for the environmental and historic preservation. The acts are similarly structured and constitute the. An exchange which maintains a futures market for crude oil. We would like to show you a description here but the site wont allow us. When the natural gas act was enacted in 1938, and for many decades thereafter, the. An act to regulate the transportation and sale of natural gas in interstate commerce, and for other purposes. The office of oil and gas global security and supply, office of natural gas regulatory activities regulates natural gas imports and exports under section 3 of the natural gas act of 1938. Oil and natural gas production tax montana department of.
An act to regulate the transportation and sale of natural gas in. Pdf natural gas pipeline regulation in the united states. Under current law, the federal energy regulatory commissions ferc ability to protect natural gas customers against unjust and. Prior to this case, independent producers sold natural gas to interstate pipelines at unregulated prices with any subsequent sales for resale being regulated. Israel that sought to export natural gas to turkey, and it was. Under section 7 of the natural gas act of 1938, ferc also issues certificates of public convenience and necessity for lng facilities engaged in interstate natural gas transportation by pipeline. Section 5 permits the federal energy regulatory commission the ferc, on its own.
In general, pipelines are allowed to charge their customers a rate which enables them to recover direct expendituressuch as the natural gas they buy from producersand to earn afair. Congress in 1938 in order to control the interstate transmission of natural gas. It imposes no new legal obligations and grants no additional rights. The federal power commission acting pursuant to authority granted by the natural gas act 58stat. The gross value is the total cubic feet produced each month multiplied by the. Natural gas act the act of june 21, 1938, chapter 556 as. Filed united states court of appeals for the fifth circuit. Natural gas pipeline regulation in the united states. These statutes regulated interstate activities of the electric and natural gas industries, respectively. In the energy policy act of 2005 epact 2005, congress.
Section 3 of the natural gas act section 3 of the natural gas act2 is the primary statutory authority for regulation of both the movement of gas across the united states border and the sale of gas over the border. Natural gas act how is natural gas act abbreviated. The natural gas act of 1938 vests the agency with exclusive jurisdiction over the interstate transportation of natural gas. Commission file number 110042 atmos energy corporation. Section 3 requires prior government approval for all imports or exports of natural gas. Under section 7c of the natural gas act of 1938, the federal energy regulatory commission ferc is authorized to issue certificates of public convenience and necessity for the. Ferc also regulates certain transportation transactions by interstate and intrastate pipelines under. Natural gas act of 1938 nga a federal statute enacted in 1938 to provide regulatory control over the interstate sale and transportation of natural gas. Within the department of energy doe, the office of regulation, analysis, and. Under section 7c of the natural gas act of 1938 nga, ferc is authorized to issue. No company or person may construct a natural gas pipeline without first.
Natural gas rates congress enacted the natural gas act nga in 1938 to regulate the sale and transportation of natural gas in interstate commerce. Click here to view the public utility holding company act as it exists today. What is the natural gas act of 1938, and what did it. Oil and natural gas producers must file an oil and natural gas production tax return. To regulate the transportation and sale of natural gas in interstate commerce, and for other purposes. In the 1900s, state regulatory commissions controlled the shipments of. Division of natural gas regulation department of energy. Under section 7c of the natural gas act of 1938 nga, the federal energy regulatory commission ferc is authorized to issue certif icates of public convenience and necessity for the construction or extension of any facilities.
Prescribing a system of accounts for natural gas companies under the natural gas act. Communications act into which the tcpa was incorporated. Prior to applying to ferc for a pipeline certificate, developers may file a request to use the commissions prefiling procedures 18 c. Does office of fossil energy fe has the delegated authority to regulate natural gas imports and exports under section 3 of the natural gas act of 1938, 15 u. Voluntary conversion of natural gas users to heavy fuel oil 717z. The natural gas marketing segment is comprised of our discontinued natural gas marketing business. The filing of this document is required by the foreign agents registration act of 1938, as amended, 22 u. Secrefsection referred to in other sections this section is referred to in sections 3301, 3431 of this title.
It was focused on regulating the rates charged by interstate natural gas transmission companies. Appendix b data sources energy information administration. Emergency conversion of utilities and other facilities. Under section 7 of the natural gas act of 1938, ferc also issues certificates of public convenience and necessity for lng facilities engaged in interstate natural gas.
The natural gas act nga of 1938 consigned regulatory oversight of the. Section 5 of the natural gas act, under which a pipeline customer or ferc itself can file a petition seeking a rate reduction. Phmsa lng frequently asked questions faq archive records. The ferc is responsible for authorizing the siting, construction, and operation of interstate natural gas pipelines, natural gas storage fields, and the liquified natural gas lng facilities pursuant to sections 3 and 7 of. Oil and gas transport and storage laws in the usa lexology. Federal register agency information collection extension.
To meet the growing demand for natural gas, ferc must continue to. Under the nga, the federal power commission was given two major powers. Get an answer for what is the natural gas act of 1938, and why is it important. The natural gas act of 1938 was the first occurrence of the united states federal government regulating the natural gas industry. Before its recent amendment, the natural gas act i gave the federal power commission jurisdiction over the rates and service of natural gas companies, defined in the act as persons engaged in the transporta.
The natural gas act of 1938, as amended, requires any person who wishes to engage in the import andor export natural gas, including liquefied natural gas, compressed natural gas, compressed gas liquids, etc. An exchange which maintains a futures market for crude oil and natural gas. Together with the federal power act of 1935, the natural gas act of 1938 nga p. Delegation of presidents authority to secretary of the interior, see note set out under section 715j of this title.